BELLE Swallowed Up The Shoe Industry.

One stone stirred up thousands of waves. After the "warm-up", BELLE International launched a "heavy blow" to buy the shoe business.

In November 14th, BELLE International Group, the leading female footwear enterprise in Hongkong, announced in Jiangsu that its wholly owned subsidiary, new beli, bought 1 billion 600 million famous footwear companies in China, 5 shoe subsidiary and several assets and trademarks.

This is the second acquisition of BELLE group after its listing in Hongkong in May this year, after BELLE bought the shoe chain corporation at the cost of 600 million yuan, the oz enterprise Limited Hong Kong Company and OSS international Limited Hong Kong Company were regarded as the "preheating" of the next big move by the industry, with a view to accumulate experience for the company's subsequent large-scale mergers and acquisitions.

It is reported that after listing in Hongkong, BELLE promised to use 27% to 31% of the 8 billion 660 million yuan assets to be used as expansion plans, mainly in the form of acquisition.

As the largest female shoe retailer in China, the new shoe acquisition company bought the shoe business, which was once known as "the first brand of Chinese men's shoes" at the cost of about 1 billion 600 million yuan, and created a merger record in the Chinese footwear industry in terms of asset size.

According to the announcement issued by BELLE, in November 11th, new Belle signed a formal agreement with Jiangsu's Sunda. It will acquire 5 subsidiary companies wholly owned by Sunda, namely: Jiangsu Sunda shoes industry Co., Ltd., Zigui Yong Xu Shoes Co., Ltd., Jiangsu Sunda Group Three Gorges Shoes Co., Ltd., Shanghai bath Industry Co., Ltd. and Shanghai Wei Dun International Trade Co., Ltd.

Jiangsu will invest in one of the 5 companies before pferring the land and property, and pfer some trademarks and intellectual property related to other brands, such as sun Da, Bai Shi, Hao Ren Yuan and the group, to Xin Bai Li.

The BELLE announcement shows that after the agreement between the buyers and sellers, the balance will be paid on or before January 10, 2008.

Notice that the final purchase price may be adjusted, but not more than 1 billion 700 million yuan.

For the reasons for the merger, there are news that this refresh the purchase of domestic shoe pactions recorded the purchase of the case, in addition to BELLE group hope that with the intention of capital strength to integrate the domestic shoe market, the group's intention to continue to develop its shoe business is also the key reason.

BELLE said that the acquisition was based on the trademark and brand recognition of the pferee.

The acquisition will further consolidate BELLE's market position, and the production facilities and assets owned by the pferee will enhance BELLE's capacity.

It is understood that the Shenzhen based BELLE group has begun to expand its business to men's shoes in recent years. The company seeks to increase its coverage in the consumer market and increase overall revenue and profits through horizontal expansion.

At present, the company is the largest female shoe manufacturer in China, with a market share of 8.2% in 2006.

Although Jiangsu Sanger group is one of the largest shoe retailer in China, the domestic influence of its footwear business has been declining in recent years. Compared with other famous men's shoes brands, such as AOKANG, snail's shoes business is developing slowly.

In addition, the company's diversified development involves many fields, such as clothing, chemical industry, biology, electric power, software development and so on.

The company has limited energy and resources to develop shoe business.

According to sources, the sale of shoe products by the company is largely due to the problem of gold chain after diversification. The sale of shoes business may be due to the repayment of large bank loans.

It is reported that in 2006, the brand of China's top ten shoe products ranked fifth.

Despite the prelude to the consolidation of the industry, some industry experts showed a rational and "reserved" look on the case of Xin Bai Li's acquisition of the brand. However, the momentum of industrial integration was highlighted by BELLE's "big hand".

Xie Rongfang, Secretary General of Wenzhou shoe and leather industry association, told reporters that the new bran purchase of the brand reached the prelude to the integration of shoe industry.

"At present, there is room for integration in the footwear industry. Of course, big brands like BELLE can buy other brands.

The acquisition and BELLE's large-scale entry into men's shoes will put pressure on other large men's shoes brands, including many of our big brands in Wenzhou, who will feel pressure and trigger their corresponding measures.

Xie Rongfang said.

It is reported that Wenzhou is known as the "shoe capital" of our country, and a large number of famous domestic men's shoes brands are here.

Xie Rongfang believes that the biggest impact on the acquisition of new belle is the large shoe enterprises. "A series of measures after the listing and listing of BELLE have caused great pressure on the large shoe enterprises, and this is very natural and normal. After all, he can make the first step forward.

If the merger is successful, it will probably impact the market of large shoe companies, which is different from the market pressure faced by small shoe companies. Large enterprises will have to face up to the strong expansion after BELLE's acquisition. "

As BELLE products are located in the middle and high-end market, the main market is in the first tier cities. Now the acquisition of the shoe business and the expansion of men's shoes business show that BELLE is trying to expand to the two or three tier cities nationwide and launch more brand positioning.

This has become the "heart disease" of many large shoe enterprises in China.

Wang Zhentao, the chairman of AOKANG group, a leading shoe manufacturer in China, is worried about the expansion of BELLE after listing. As early as the news of the listing of $8 billion 660 million in BELLE Hongkong came out, Wang Zhentao asked questions. If BELLE used these funds to distribute in the country, then how should AOKANG deal with it?

And after the BELLE group went public in the production of men's shoes, Wang Zhentao sighed: "the competitor has added one, and it is heavyweight."

At present, the industry generally believes that the shoe market in China is still highly dispersed. At the moment, another leading enterprise in BELLE's acquisition industry, under the premise of successful integration, will promote the market share of the domestic footwear industry to gradually concentrate from a high degree of decentralization and have an impact on the competition pattern of the industry.

Regarding this, Wang Jian, Secretary General of Fujian footwear industry association, believes that the acquisition has its positive significance.

"I am not surprised about the acquisition. This is a normal phenomenon after the mature industry and market development. Compared with the mature industry, big enterprises will definitely have a breakthrough."

But for the success of BELLE's acquisition, many people in the industry are wait-and-see.

"We know this very early, but we have to look further in order to make a judgment on the success or failure of the acquisition."

Zhang Shuhua, director of China Leather Association, said.

Seeking capital power "help" is said to have told people around Wang Zhentao that BELLE's recent expansion has led to too much pressure on its own, thereby affecting its sleep quality.

Wang Zhentao's worries are based on the development of the industry.

He has published his views on the future development of the domestic footwear industry on different occasions. "There will be a watershed within the next two or three years, and the market share will be further concentrated".

At present, Wang Zhentao's views are recognized by many people. In this case, the industry's question is, who will be the winner in this wave of industrial integration?

Who will take the lead in this race?

Xie Rongfang believes that BELLE is now in the forefront, "the main reason for upgrading the industry is to make institutional innovations, and BELLE has made a step forward in this regard."

What Xie Rongfang said about BELLE's innovation in mechanism refers to BELLE's listing in Hongkong in May this year. BELLE launched a large-scale expansion with the power of capital. First, it bought Aoshi enterprise, Limited Hong Kong Company and OSS international Limited Hong Kong Company, then set foot in men's shoes business, and then acquired the shoe business.

According to BELLE's plan, the company also plans to use 25% of its funds to open new stores, and plans to open 1000 new stores a year.

As a result, companies competing with BELLE feel the pressure.

"People take the first step, naturally will bring pressure on the latecomers."

Xie Rongfang said.

This pressure, in turn, leads to the desire of competitors to "change the status quo".

At present, many leading shoe makers, including AOKANG, Kangnai and red dragonfly, are planning to go public. They hope to capitate on the strength of capital to cope with future competition and large-scale expansion.

Wang Zhentao believes that the time has come for AOKANG to go public. "In this era of pursuit of speed, we must consider the power of capital. Only in this way can we effectively integrate all kinds of resources and make enterprises bigger and stronger."

As a result, in today's domestic shoe industry, as the leading companies are listed on the market or are about to go public, the competition among the large domestic shoe enterprises will be expected to enter the "capital" competition stage from the past industrial competition.

In this regard, analysts pointed out that BELLE's business ideas can be copied by other brands, "through capital operation, get ample cash flow, and then expand their market share through mergers and acquisitions."

At present, AOKANG has signed the global strategic partnership agreement with the international famous management consulting company, Kearney, which will focus on AOKANG group's strategic development and enterprise control mode set up from 2008 to 2012.